Mazagon Dock hits new high

Yesterday, the Department of Public Enterprises (DPE) approved the proposal for grant of Navratna status to Mazagon Dock Shipbuilders. It is now officially India’s 18th Navratna PSU.

The main aim of assigning the "ratna" statuses to various CPSEs was to give operational freedom and decision-making power to the state-run entities. The CPSEs can decide on certain matters such as investment and new projects without approaching the government until a particular threshold.

As of today, there are 57 Miniratna, 18 Navratna and 13 Maharatna companies.

There was a news published in Economic Times  website yesterday that it in talks for Rs.35,000 crore deal with the Ministry of Defence. The company clarified that it has submitted the bid for the three additional submarines under project P75 which is an activity in the normal course of business. But it also said that submission of bid does not result into automatic bagging of an order though everyone on the Street feels that being a PSU and that too now a Navratna, it is in a win-win situation.

The market was very happy with this news, so much so that stock price rose 7.5% to hit a lifetime high at Rs.4269.75.